PS2 Price Drop Reactions: Optimism, Indifference and Confusion

PS2 Price Drop Reactions: Optimism, Indifference and Confusion

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Sony's decision to cut the price of the PS2 has drawn drawn a wide range of reactions including praise from at least one industry analyst, derision from Microsoft and a bit of salient questioning from a very surprising source.

Sony announced earlier today that the price of the PlayStation 2 would be reduced to $99 in North America and €99 ($131) in Europe, a move which EEDAR analyst Jesse Divnich predicted would increase sales of the console and help slow its loss of overall market share in the future. EEDAR estimated that the PlayStation 2 was responsible for 21 percent of all home console software sold worldwide in the last quarter of 2008, slipping to 19 percent in the first quarter of 2009.

"Before the announcement of the price cut, we expected PS2 software sales, a good measure of a console's health, to decline to 16% April through July. We now expect PS2 software to maintain an 18% market share among home console unit sales for quarter two," Divnich told Gamasutra.

"The PS2 currently has the largest software library of any console with over 1,650 titles to date according to EEDAR's GamePulse database, plus an additional 110 titles expected to launch throughout 2009," he continued. "With a mid-range DVD player currently costing $50, an additional $50 to also get a gaming console with the largest software library makes the PS2 an incredible deal - particularly during the current global economic conditions."

Microsoft was predictably less enthused about the reduction, dismissing it as more of a death twitch than a relevant maneuver. "This move from Sony at the end of the PS2's life cycle is not unexpected. We believe, however, that the future lies in the growth of current generation consoles and Xbox 360, as the fastest growing games console last year, with sales up over 80 per cent, will continue to drive the market," Microsoft's Interactive Entertainment Business Vice President Chris Lewis told GamesIndustry. "Xbox 360 has clearly demonstrated that the combination of the right price, blockbuster games as well as the market-leading broad connected entertainment content available through Xbox Live will continue to resonate with the ever growing needs of today's consumers."

But the most interesting comment came from an unexpected source and not in the aftermath of the price cut but in anticipation of it. Sony Computer Entertainment America President and CEO Jack Tretton expressed optimism that the lower price "will bring in new consumers" and help boost the PlayStation brand but eight months ago he didn't seem quite so confident in the idea.

"I want to understand the consumer that says '$129, too rich for my blood, but $99, I'm all over it'," he said in a July 2008 interview with Edge. "If that $30 was the difference between buying a console and not buying a console, how many games are you going to sell to that person?"

A valid question, I think. Reducing the price of the PlayStation 2 may draw in a few latecomers and cheapskates but it also comes off as a bit of a slap-in-the-face reminder that the price of the PlayStation 3 is staying put. At this point, even I have to start thinking that maybe it's time for Sony to spend less time trying to impress people with the durability of its old console and more time trying to work up some interest in the new one.

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I just love the way Microsoft makes those statements.

"MS: Ya well the, the PS2 is going down, it's certain. The 360 is the best console on the market, it's the fastest selling, it has the most games and it will dominate over all it's competition.
Interviewer: I understand that, but the 360 isn't competing with the PS2, the original Xbox did that and it lost.
MS: I'm sorry, what did what, when?
I: The Xbox, it lost to the PS2.
MS: No it didn't, the 360 didn't lose to anyone.
I: Not the 360, the orignal Xbox
MS: The 360 is the one and only Xbox on the market, no one can beat it.
I: I understand that, but it's predecesor, from last gen was...
MS: Last gen? What are you talking about we've always had the 360, it has more games than than any other console on the market, and Xbox Live is fabulous.
I: I understand that, but before the 360 was the normal Xbox.
MS: No there wasn't, we've always had the 360.
I: Yes there was, there was the original that got pulled after the PS2 took of like a rocket.
MS: No there wasn't.
I: Yes there was, I have one.
MS: No, you lie, there isn't one.
I: There is an original Xbox
MS: No, liar. LALALALALAL, I'm not hearing you, liar. LALALLALA
I: Ok, I'll back away now and pretend we stoppet talking five minutes ago.
MS: I'm not hearing you LALALALLALA."

Curtains fall

Yea MS is really getting a tad ridiculous in their press statements. It boils down to Sony securing some kind of deal or getting a new exclusive which is met by MS saying:
"360 still the best!!111!!".

I might actually get another PS2 with this deal, been thinking about it quite a bit.

Malygris:
as the fastest growing games console last year, with sales up over 80 per cent, will continue to drive the market," Microsoft's Interactive Entertainment Business Vice President Chris Lewis told

Wasn't that the Wii, or are they still not acknowleging Nintendo?

Brotherofwill:

Malygris:
as the fastest growing games console last year, with sales up over 80 per cent, will continue to drive the market," Microsoft's Interactive Entertainment Business Vice President Chris Lewis told

Wasn't that the Wii, or are they still not acknowleging Nintendo?

Nintendo is a myth! Stop with your lies!

Brotherofwill:

Malygris:
as the fastest growing games console last year, with sales up over 80 per cent, will continue to drive the market," Microsoft's Interactive Entertainment Business Vice President Chris Lewis told

Wasn't that the Wii, or are they still not acknowleging Nintendo?

The Wii has sold like bananas since it debuted, 360 sales didn't start picking up until last year. Hence the "fastest growing games console"

I am not sure how it works with exclusives and what not to the playstation, but are most games getting made for the PS3 still being made for the PS2? Why not drop the price of the PS3, and get people more interested in moving up a generation, instead of clinging to the past one.

Microsoft's PR department need to back off some. They get those noses of theirs into too much.

microsofts sales growing perhaps due to the amount of people that have to buy a new 360 after their previous one mysteriously died...stupid microsoft.ill never forgive themm!

Have to admit, this is completely the opposite of what I expected.
I thought the announcement would be the discontinuation of the PS2 -- a console which is still serving as competition for their own PS3, and thus keeping them from reaching the volume levels that let them run economies of scale on the machine.

Instead, they're dropping the prices of the PS2? I can only guess they're hoping to use it as a sort of "gateway drug" to the PS, and hey, once you've picked up a bunch of PS2 games, it makes more sense to go with a PS3 if you choose to upgrade.

It strikes me as a dumb move, to be honest. Sure, it'll help boost their revenues for the next couple of quarters, but the problem is that the PS2 market is, I expect, nearly saturated already, and as the downturn continues, having a cheap PS2 means its even less likely that people will bother upgrading. My only guess is that Sony is playing a long game (like 4+ years long) in the hopes that they'll get enough customer loyalty to withstand the next Xbox and the Wii2. This would tend to fit in with the strategy of the PS3 as well, so it makes some sense that way.

Unfortunately, I don't think they're seeing the downturn in the economy as serious as it is. Hopefully management hasn't bought into the idea that games are recession proof.

I'll just clap in minor glee.

*claps in minor glee :D*

Hey, it was a price drop of something right?

while I like the PS2 & if ever needed to would hands down buy one over a Ps3 (though ive had my current one for over 5years & it still hasent once failed on me); chutting E30 off the price really seems like a pointless change that tbh, opened them up to yet another cheap pot shot from MS. Its like watching PMs questions MS & Sony going at eachother.

Where the hell can one get a new PS2 anyway?

Microsoft = Rediculous, yes

But.. a price dropped PS2?

Are games besides NeoPets and AMAZING DARTS 09! being made for that still?

TsunamiWombat:
Are games besides NeoPets and AMAZING DARTS 09! being made for that still?

Persona 5... apparently. And any other bizzare shit from '08 that Atlus feel like localizing.

harhol:

TsunamiWombat:
Are games besides NeoPets and AMAZING DARTS 09! being made for that still?

Persona 5... apparently. And any other bizzare shit from '08 that Atlus feel like localizing.

SRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGs
SRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGsSRWOGs
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sharks9:

Brotherofwill:

Malygris:
as the fastest growing games console last year, with sales up over 80 per cent, will continue to drive the market," Microsoft's Interactive Entertainment Business Vice President Chris Lewis told

Wasn't that the Wii, or are they still not acknowleging Nintendo?

Nintendo is a myth! Stop with your lies!

It is a story designed to frighten fanboys...

I'm considering buying a PS2, since my old one is dying, and I have a pretty good size game library for it. Especially since Sony cut backwards-compatibility from the PS3.

If I want to be able to play my old PS2 games 15 years from now, I either have to hope that I can find a working PS2 somewhere (and the optical disc has not decayed), or that there are actually usable emulators out there. Of course, I'm sure Sony will be willing to re-sell me a download copy on their fancy new PS5.

according to some sites here in canada the price will be $110 , don't know why it seems a bit stupid despite the exchange rate this is total fucking bs they should drop it to $75 and or toss in a free memory card

Onmi:

harhol:

TsunamiWombat:
Are games besides NeoPets and AMAZING DARTS 09! being made for that still?

Persona 5... apparently. And any other bizzare shit from '08 that Atlus feel like localizing.

SRWOGs

I'm looking forward to the one on the DS. Didn't realise they were doing one for the PS2 as well. Not that I'm familiar with this series at all...
Looks good though. You can never have enough TRPGs.

harhol:

Onmi:

harhol:

TsunamiWombat:
Are games besides NeoPets and AMAZING DARTS 09! being made for that still?

Persona 5... apparently. And any other bizzare shit from '08 that Atlus feel like localizing.

SRWOGs

I'm looking forward to the one on the DS. Didn't realise they were doing one for the PS2 as well. Not that I'm familiar with this series at all...
Looks good though. You can never have enough TRPGs.

they aren't as far as I know, if everyone buys Infinity Frontier they might consider it however.

And I'm hit with an over-whelming feeling of "meh." I'm happy they're doing it, but most people own a console from this generation, and probably won't buy one. Unless you own a PS3 and wanna play all your old games :P

My PS2 is on its last leg. At least it won't cost much to replace if it does finally stay broken.

And lol at Microsoft comments.

Gamer137:
Microsoft's PR department need to back off some. They get those noses of theirs into too much.

Whilst I dont want to sound like a Sony fanboy (I am though :) ) it seems like these insults are becoming more one sided. Microsoft seem to have critisized every move that Sony has made in the last 6 months.

I dont think the price reduction was a bad move at all, it sells an extra few units of a great console, finances Sony's next gen ventures and exploits the fact that some people still cant afford next gen consoles with the recession.

Because outside the US next gen console adoption has been very slow and previous gen consoles as well as games continue to sell well. It's one of those' don't fix it if it ain't broken' situations. There are more people that didn't ask for the next gen consoles than did. You know, just like not all people have or need an HDTV.

 

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